Article 6QDFS Gnosis Chain Reconsiders Gas Token Options Following MakerDAO’s New Stablecoin Launch

Gnosis Chain Reconsiders Gas Token Options Following MakerDAO’s New Stablecoin Launch

by
Rida Fatima
from Techreport on (#6QDFS)
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Gnosis Chain is contemplating a significant decision that could reshape its operational sector. According to reports, the Gnosis community is actively reevaluating its choice of gas tokens.

This move comes after MakerDAO's strategic rebranding to Sky and the launch of its Sky Dollar (USDS) stablecoin.

Currently, Gnosis uses a bridged version of the DAI stablecoin called xDAI as its gas token. A switch will see the protocol adopting MakerDAO's new stablecoin or another token entirely.

Gnosis Chain Gas Token Choices

Gnosis Chain, which operates a sidechain, currently relies on xDAI, a bridged version of MakerDAO's stablecoin DAI, to cover gas fees. However, MakerDAO's latest plans, including the option for DAI holders to upgrade to USDS, have shifted the dynamics.

This upgrade to USDS is part of MakerDAO's broader endgame" plan. It aims to offer DAI holders the ability to swap their tokens 1:1 and potentially earn native token rewards.

However, USDS introduces features that have sparked concern among the Gnosis Chain community. Unlike its predecessor, USDS can freeze" wallet addresses and restrict user access in certain regions, specifically the US and the UK.

This level of control represents a significant shift toward centralization, a move that many Gnosis Chain members find troubling.

The primary issue lies in the fundamental principles of decentralization that the Gnosis Chain upholds. The community sees USDS' freeze function as a direct contradiction to these values.

One vocal community member, 0xLajota, expressed their disapproval. He highlighted that the ability to block some wallets or smart contracts with USDS is against the essence of Gnosis, which is decentralization and permissionless use.

Responding to Prevalent Concerns

Gnosis Chain's community has begun to consider alternative gas token solutions in light of these concerns. One proposed option is to switch to more decentralized stablecoins such as RAI or LUSD. These stablecoin choices align more closely with Gnosis' commitment to decentralization.

Another idea gaining traction is adopting a basket of currencies, which could provide a more resilient and diversified approach to gas fees.

There is also discussion around the possibility of using Gnosis' native staking token, GNO, as the gas token. This would align Gnosis Chain with other blockchain protocols that utilize their native tokens for transaction fees.

However, it's worth noting that these discussions are still in the early stages. No official proposal has been put forward, and the community continues to weigh each potential solution's pros and cons.

Meanwhile, Gnosis Chain has been on a journey to establishing an improved platform for more secure applications for developers. In June, Gnosis announced partnering with Chainlink to provide Gnosis' developers with an easy-to-use interface to create secure applications.

According to the platform, the application would enable them to transfer tokens, send messages, and initiate actions in several blockchain networks. This development primarily depends on Chainlink CCIP, an industry-standard blockchain interoperability solution.

The post Gnosis Chain Reconsiders Gas Token Options Following MakerDAO's New Stablecoin Launch appeared first on The Tech Report.

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